Last week Citron’s Andrew Left made some less than flattering comments about Shopify’s business practices, causing their stock to drop from $145.70 to $128.95 over the course of one day. Left claimed that as much as 90% of Shopify’s customer base was less than legitimate, and that their stock should be worth half of what it was valued at.
Shopify’s CEO, Tobias Lütke, took to Twitter on Tuesday to finally fight back against Left’s remarks, after a near week of silence.
“Lots of people want me to address the short-selling troll thats targeting $SHOP. Looking forward to next earnings calls to do so” read Lütke’s first tweet.
Lütke then followed with another, “The irony of an outfit like Citron accusing any business of being a get-rich-quick scheme should not be lost on anyone”
Andrew Left, author and editor of Citron Research, is a noted short-seller, famous for betting against the performance of stocks that he believes are over-valued. According to Bloomburg, complied data shows that roughly 4 million of Shopify’s stocks are held by short-sellers, making up 3% of their total. However, this number has almost doubled since mid-August.
While Shopify shares continued to drop over the past week, Wednesday finally saw some improvement. When the markets closed Shopify had gained back just over 2%, bringing their shares to $118.40.